Metro Vancouver’s condominium market is in a pickle with approximately 2,500 newly built units sitting vacant and unsold, double the number from a year ago, according to the Canada Mortgage and Housing Corporation.
The average condo price fell to $734,400 in August 2025, representing a 4.4% decline from the previous year. Downtown Vancouver condos dropped from $1,264 per square foot in the first half of 2024 to $1,206 in the same period this year.
Active listings reached 16,242 units in August, up 18% year-over-year and significantly above the five-year average of 11,100, creating a buyer’s market with increased negotiating power.
“There is a potential storm coming and it’s frightening,” Anne McMullin, president and CEO of the Urban Development Institute, told CBC News, noting that some companies are already laying off staff.
Industry executives cite multiple factors for the slowdown: construction costs exceeding what residents can afford, elevated mortgage rates despite recent declines (five-year fixed rates currently around 4%), and reduced immigration under new federal policies.
Some developers have returned deposits to buyers after failing to meet pre-sale targets needed for bank financing, while others have entered receivership. To move inventory, developers are offering incentives, including free parking stalls, storage lockers, and cash-back deals.
The unsold units are concentrated primarily in Burnaby, Coquitlam, and parts of Surrey, according to Greg Zayadi, president of Vancouver-based developer Rennie. He noted this represents the highest level of developer-owned unsold inventory in 24 years.
Real estate agents report that buyers are seeking larger units of 800 to 1,500 square feet priced between $800,000 and $1.2 million, while many new developments feature smaller 450- to 500-square-foot units that fail to attract interest.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
